Males major in engineering much more frequently than females. Starting salaries for engineers (male or female) are much higher than average. As a result, the observed gender wage gap for all college graduates will be ________ than the gender wage gaps in specific majors because ________.
A. smaller; males and females choose different majors
B. larger; of employer discrimination
C. larger; males and females choose different majors
D. larger; of academic discrimination
Answer: C
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If the government increases its purchases of goods and services by $3,000 and the MPC is 0.8, GDP and income will eventually increase by
A) $2,400. B) $6,000. C) $15,000. D) $24,000.
Which of the following does NOT occur if Home starts a policy of permanent fiscal expansion:
A) Home's exchange rate increases. B) Foreign's interest rate rises. C) Home output rises. D) Foreign output rises. E) Current Account Balance increases.
Suppose total government spending is increased permanently by ten percent, with no change in tax rates. In the long run, the resulting deficit will disappear, ________
A) only if government spending is brought back down to the original level B) if economic growth raises tax revenue by ten percent C) if the government debt is sold to foreigners D) unless the money is spent entirely on government consumption
A system that assesses proportionately higher taxes on the rich than it does on the poor is called a ________
Fill in the blank(s) with correct word